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WINNEMUCCA, NEVADA--(Marketwire - Feb. 15, 2011) - Paramount Gold and
Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ)
("Paramount") announced today assay results from the first
four core holes drilled on the West Wood target at its 100% owned
Sleeper Gold Mine Project in Nevada have returned gold values
consistent with past production from the project and confirmed the
resource model developed by the previous owner. Assay results from a
further 14 holes completed at the Sleeper project are expected shortly.
In September, 2010 Paramount announced a $3 million exploration program
designed to expand and upgrade resources at the Sleeper project. The
exploration program had three main objectives, they were: (1)
definition drilling to up-grade resources at the West Wood deposit and
prepare it for a Preliminary Assessment (`PA`) of its economic
potential; (2) delineation drilling to expand and evaluate resources at
the Facilities deposit for possible inclusion in the PA; and (3) drill
evaluation of up to six new priority targets on the property identified
by Paramount's geological team. (See property map for targets - http://www.paramountgold.com/_docs/sleepertargetmap0913.pdf).
Paramount CEO Christopher Crupi noted,
"The evidence from the drill program suggests that we are likely
to have success upgrading inferred resources to higher categories and
increasing the overall size of the West Wood deposit. The first four
holes targeted distinct gaps between previous drilling. All four
intercepted good grades over excellent widths as predicted by the
resource model. We can now proceed with the resource model provided by
the previous owner with confidence. In addition, we encountered
mineralized intervals in the hanging wall which provide evidence of
continuity for several of these adjacent zones, likely enabling them to
be classified as resources." (See cross-section - http://paramountgold.com/_docs/sleeperWWSections.pdf).
Results from the four holes are as follows:
-------------------------------------------------------------------------- Total Thickness Hole ID Depth (m) From (m) To (m) (m) Au g/T Ag g/T -------------------------------------------------------------------------- PGC-10-001 351.7 116.8 120.5 3.7 5.32 NA -------------------------------------------------------------------------- 124.4 132.1 7.6 3.04 NA -------------------------------------------------------------------------- 147.3 161.0 13.7 0.73 NA -------------------------------------------------------------------------- 167.1 170.2 3.1 1.29 2.5 -------------------------------------------------------------------------- 174.8 179.3 4.6 0.89 1.2 -------------------------------------------------------------------------- 183.9 189.3 5.3 1.75 NA -------------------------------------------------------------------------- 203.7 209.8 6.1 1.31 4.0 -------------------------------------------------------------------------- 219.0 252.5 33.6 1.52 4.0 -------------------------------------------------------------------------- 275.4 280.0 4.6 0.59 3.0 -------------------------------------------------------------------------- 284.6 290.7 6.1 1.35 6.8 -------------------------------------------------------------------------- 301.3 305.9 4.6 0.52 1.2 -------------------------------------------------------------------------- -------------------------------------------------------------------------- PGC-10-002 230.9 91.2 98.8 7.6 0.85 NA -------------------------------------------------------------------------- 103.5 132.4 28.9 0.95 1.0 -------------------------------------------------------------------------- 170.5 173.5 3.1 0.89 1.9 -------------------------------------------------------------------------- 181.0 185.3 4.2 1.28 1.4 -------------------------------------------------------------------------- 188.8 230.9 TD 42.1 2.72 13.0 -------------------------------------------------------------------------- -------------------------------------------------------------------------- PGC-10-003 335.8 168.7 171.7 3.1 0.84 NA -------------------------------------------------------------------------- 191.5 196.1 4.6 1.02 NA -------------------------------------------------------------------------- 209.8 240.3 30.5 1.57 1.1 -------------------------------------------------------------------------- 258.6 275.1 16.5 1.00 2.5 -------------------------------------------------------------------------- 283.3 290.7 7.3 0.76 2.4 -------------------------------------------------------------------------- 298.0 302.6 4.6 0.68 0.4 -------------------------------------------------------------------------- 313.5 329.2 15.7 0.73 2.6 -------------------------------------------------------------------------- -------------------------------------------------------------------------- PGC-10-004 219.0 145.8 150.4 4.6 0.88 NA -------------------------------------------------------------------------- 183.9 205.3 21.4 0.63 13.2 -------------------------------------------------------------------------- 215.9 219.0 3.1 1.73 3.2 --------------------------------------------------------------------------
West Wood Vein Target
The West Wood target is on the southwest corner of the Sleeper Pit and
has been extensively drilled to reveal a high grade core zone
surrounded by lower grade gold concentrations. With characteristics
similar to the original Sleeper deposit, this target has NI 43-101
compliant estimated resources of:
-- Indicated Resources of 16.96 million tonnes grading 0.98g/t of gold and 4.6g/t of silver containing 530,000 ounces of gold and 2.5 million ounces of silver at a 0.4g/t Au cutoff; -- Inferred Resources of 390,000 tonnes grading 0.56g/t of gold and 2.3g/t of silver containing 10,000 ounces of gold and 30,000 ounces of silver at a 0.4g/t Au cutoff.
Six core holes totaling
1,705 meters, and three reverse circulation holes totaling 957 meters
have been completed on the West Wood target. Drilling was conducted to
determine the northern limits of the West Wood target and to upgrade
resources. This work also obtained sample material for metallurgical
testing and geotechnical information for conceptual pit planning to
enable basic processing and engineering studies required for a PA. The
southern limit of the West Wood target remains open under the
historical waste dump and will be evaluated in the coming months in
conjunction with evaluating the gold-bearing potential of the
substantial amount of waste material from the former mine. Further
results are expected shortly.
Facilities Target Area
The Facilities Target is on the eastern side of the Sleeper pit and is
a broad area of continuous lower grade gold-bearing material. Several
drill holes by previous operators encountered bonanza grade
intersections but the drill spacing was too wide to define the extent
and distribution of the higher grade material. It is anticipated that
defining the limits of the higher grade intervals in the Facilities
Target should have a positive effect on the grade of this resource. The
current NI 43-101 resource estimate is the following:
-- Indicated Resources of 10 million tonnes grading 0.69g/t of gold and 7.8g/t of silver containing 220,000 ounces of gold and 2.5 million ounces of silver at a 0.4g/t Au cutoff; -- Inferred Resources of 19.6 million tonnes grading 0.60g/t of gold and 6.7 g/t of silver containing 370,000 ounces of gold and 4.2 million ounces of silver at a 0.4g/t Au cutoff.
A program of eight reverse circulation drill
holes totaling 2,330 meters, and one core hole of 261.8 meters was
completed on the Facilities Target. These holes were designed to
evaluate the continuity of existing bonanza-grade intersections.
Results are expected shortly.
New Targets
Results from work at West Wood and Facilities have identified several
new targets not previously considered. Ongoing work is dedicated to
prioritizing other targets for drill testing. Originally, a drill
campaign of approximately 1,250 meters was established for these target
tests, however, the size and depth of identified targets may require
expansion of this program.
This news release has been reviewed by Glen van Treek,
a Vice President of the Company and William Threlkeld
a Qualified Person pursuant to National Instrument 43-101. Although
Paramount Gold is a U.S. domiciled corporation and a full SEC
registrant, Paramount reports its mineral resources according to the
Canadian standard known as National Instrument 43-101 to facilitate
comparison with other similar companies that trade on the TSX.
Cautionary Note to U.S. Investors Concerning Estimates of Indicated and
Inferred Resources:
This news release uses the terms "indicated resources" and
"inferred resources". We advise U.S. investors that while
these terms are defined in, and permitted by, Canadian regulations,
these terms are not defined terms under SEC Industry Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. "Inferred resources" have a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of a feasibility
study or prefeasibility studies, except in rare cases. The SEC normally
only permits issuers to report mineralization that does not constitute
SEC Industry Guide 7 compliant "reserves", as in-place
tonnage and grade without reference to unit measures. U.S. investors
are cautioned not to assume that any part or all of mineral deposits in
this category will ever be converted into reserves. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally minable.
Safe Harbor for Forward-Looking Statements:
This release and related documents may include "forward-looking
statements" including, but not limited to, statements related to
the interpretation of drilling results and potential mineralization,
future exploration work at the Sleeper Gold Mine Project and the
expected results of this work. Forward-looking statements are statements
that are not historical fact and are subject to a variety of risks and
uncertainties which could cause actual events to differ materially from
those reflected in the forward-looking statements including
fluctuations in the price of gold, inability to complete drill programs
on time and on budget, and future financing ability. Paramount's future
expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and other applicable
securities laws. Words such as "believes," "plans,"
"anticipates," "expects," "estimates" and
similar expressions should also be considered to be forward-looking
statements. There are a number of important factors that could cause
actual results or events to differ materially from those indicated by
such forward-looking statements, including, but not limited to:
uncertainties involving interpretation of drilling results,
environmental matters, lack of ability to obtain required permitting,
equipment breakdown or disruptions, and the other factors described in
Paramount's Annual Report on Form 10-K for the year ended June 30, 2010
and its most recent quarterly reports filed with the SEC available on www.sec.gov and
applicable Canadian securities regulators available on www.sedar.com and
X-Cal's filings with the applicable Canadian securities regulators
available on www.sedar.com.
Except as required by applicable law, Paramount disclaims any intention
or obligation to update any forward-looking statements as a result of
developments occurring after the date of this document.
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